When distributions from an S Corp exceed Retained earnings and income

[joe7230]

I have an S Corp client whose shareholder distributions exceed his beginning R/E + current year income

by $7,000.  The Pro Series software plugs in 0 for retained earnings and makes no mention of the $7000.

I don't do many Corporations and have never encountered this situation before.  Not sure how to deal with 

this.  Any suggestions helpful

[dkh]

here is a post with same question

Distributions in excess of retained earnings - Intuit Accountants Community

[Terry53029]

Distributions will reduce his basis, if they exceed basis it will be long/short term capital gain

[dd4vols]

or... set the $7,000 us as a note rec from the officer (balance sheet item), and make him pay it back in an ensuing year.